Updates, advisories and surprises

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ACT Teleconferencing sees Q3 revs up 18% (3:47 PM ET) ACT Teleconferencing
ACTT
is rallying 27 cents, or 25 percent, to $1.35, after the Denver provider of teleconferencing services said that it expects overall third-quarter net revenue to jump 18 percent from its year-ago total of $10.8 million. The company also said that it logged roughly 500,000 minutes of conferencing in September, a volume jump of 75 percent from August. ACT expects volume to grow another 50 percent on a sequential basis in October.

Imagistics boosts buyback program to $58M (3:30 PM ET) Imagistics International
IGI, +0.05%
is adding $1.20, or 8.3 percent, to $15.65, after the Trumbull, Conn., direct sales and marketing firm said that its board has approved an increase in its buyback program to $58 million from $30 million. "This action by the Board is a reflection of their confidence in our ability to execute on our strategic plan to improve earnings and build long-term value," said Joseph Skrzypczak, the company's chief financial officer, in a press release. "Our strong cash position has enabled us to repurchase our stock and simultaneously reduce debt."

MicroFinancial to de-emphasize loan originations (3:11 PM ET) MicroFinancial
MFI, -4.00%
is down 91 cents, or 26.8 percent, to $2.49, after Peter Bleyleben resigned from the CEO post, and the company said it plans to de-emphasize new loan originations as part of a new business strategy. The Waltham, Mass., financial services firm named President and Chief Operating Officer Richard Latour to the added post of chief executive officer. The company attributed its decision to cut down on new loans to the difficult financing environment, and said that it would look to leverage its core technology and services platform in the future. As part of the strategy shift, MicroFinancial plans to reduce its loan originations' workforce by 31 percent.

Beverly Enterprises reiterates Q3 pro forma EPS view (2:51 PM ET) Beverly Enterprises
BEV, +4.55%
is gaining 27 cents, or 14.4 percent, to $2.14, after the Fort Smith, Ark., provider of healthcare services reiterated its outlook for pro forma earnings of 12 cents per share. The company also went on record as saying that its reserves for patient care liability costs for prior policy years and its accrual level for the current policy year are "proper and adequate." Earlier in the session, the stock plumbed a 52-week low of $1.60.

Audiovox gets lift from Q3 results (2:36 PM ET) Audiovox
VOXX, +1.87%
is gaining 39 cents, or 5.6 percent, to $7.38, after the Hauppage, N.Y., marketer of consumer electronics and cell phones reported third-quarter earnings of $1.9 million, or 8 cents per share, up from its year-ago profit of $1 million, or 5 cents a share. The results far eclipsed the estimate of a single analyst polled by Thomson First Call for a penny per share. Sales totaled $291.4 million in the latest three months.

Gulfmark tumbles after dropping Q3 EPS outlook (2:15 PM ET) Gulfmark Offshore
GMRK
is falling $3.60, or 22.2 percent, to $12.60, after the Houston-based provider of marine transportation services lowered its third-quarter earnings outlook to 32 to 34 cents a share, well below Wall Street's consensus estimate for a profit of 42 cents a shaer in the period. The company attributed the shortfall to weaker spot demand in the North Sea, its re-positioning of vessels due to new contracts in Brazil, the sale of a crew boat, and contract turnover in the last half of September.

Manor Care says it's ok w/ quarterly earnings view (1:57 PM ET) Manor Care
HCR, +0.00%
is reiterating its patient liability claims experience for 2002, and saying that it remains "very comfortable" with its earnings expectations for the quarter. Analysts polled by Thomson First Call are looking for a profit of 36 cents a share in the September quarter, on average. The shares are up 7 cents, or 0.4 percent, to $18.75, in late action. Earlier in the session, the stock scraped a 52-week low of $16.20, feeling the downdraft of news about increased patient liability claims at Kindred Healthcare.

Total Entertainment oks buyback; comfy w/ estimates (1:40 PM ET) Total Entertainment Restaurant
TENT
is surging $2.23, or 34.7 percent, to $8.66, after the Wichita, Kan., firm said that its board has authorized the buyback of up to 500,000 shares of its common stock. The repurchases will be funded through available bank facilities. Total Entertainment, which operates restaurants under the names 'Fox and Hound' and 'Bailey's,' also said that it's comfortable with consensus earnings estimates of 30 cents a share and 68 cents a share for the fourth quarter and full year, respectively, and with analysts' same-store sales estimates for growth of 2 percent in the quarter.

Solutia sees Q3 underlying earnings below views (11:39 AM ET) Solutia
SOI, +0.17%
is down 20 cents, or 4 percent, to $4.80, after the St. Louis provider of performance coatings and films forecast underlying earnings of about 11 cents a share in the third quarter, below the current average estimate of analysts polled by Thomson First Call for a profit of 16 cents a share. The company said its results were hurt by uncertainty in global markets and higher raw material costs. The underlying earnings outlook includes a previously disclosed loss of $5 million, or 5 cents a share, related to flooding of a facility in Texas, but it excludes charges totaling $11 million, or 11 cents a share, related to a pension loss settlement and a dispute with Fluor Corp.
FLR, -1.05%

Echelon surges following strong Q3 report (11:17 AM ET) Echelon
ELON, +0.21%
is gaining $2.20, or 22.8 percent, to $11.84, in midday action. After Thursday's closing bell, the San Jose, Calif., developer of appliance interconnection technology reported third-quarter earnings of $5.3 million, or 13 cents per share, up from its year-ago profit of $757,000, or 2 cents a share, 4 cents ahead of Wall Street's consensus estimate. Revenue spiked 85 percent higher to $33.4 million in the latest three months from $18 million in the same period a year earlier. Gross margin swelled to 51 percent in the quarter from 48.8 percent in last year's equivalent period.

CompuDyne tumbles on lower EPS outlook for year (10:40 AM ET) CompuDyne
CDCY
is falling 99 cents, or 14.3 percent, to $5.92, after the Hanover, Md., security technology firm reduced its outlook for the year to earnings of 45 cents a share from a range of 60 to 65 cents per share. The company said "third quarter earnings are expected to be nominal with fourth quarter earnings expected to be significantly improved and possibly exceeding earnings per share in the fourth quarter 2001." CompuDyne said earnings were hurt by delays in expected awards. The company also said it plans to re-instate its $1 million buyback program.

Kindred Healthcare withdraws earnings outlook (10:21 AM ET) Kindred Healthcare
KIND
is plummeting $16.81, or 60.6 percent, to $10.91, after the Louisville, Ky., provider of long-term healthcare services withdrew its previous earnings outlook, and said that it would record about $55 million in additional costs for professional liability claims. The company said that "substantially all" of the additional claims costs are related to its nursing center operations. Kindred believes that it will record an additional $10 million in claims costs in the fourth quarter, and said that it plans to take steps to reduce its exposure to the dramatic increase in professional liability costs in Florida. To this end, Kindred has contacted Ventas, its primary landlord, about its strategic options in Florida, where it operates 18 nursing centers, 15 of which are leased from Ventas.

TheraSense warns of wider-than-expected Q3 loss (9:56 AM ET) TheraSense
THER
is plunging $3.19, or 37.5 percent, to $5.36, after the Alameda, Calif., maker of glucose montioring systems warned that it expects an operating loss of 24 cents a share on revenue of roughly $39 million. This revenue projection is below its previous forecast. Analysts polled by Thomson First Call are currently looking for a loss of a penny per share in the period. TheraSense said that growth has not accelerated as quickly as anticipated in both its domestic and international markets. The stock was hit with downgrades by Pacific Growth Equities and U.S. Bancorp Piper Jaffray in the wake of the news.

Powerwave slides despite topping Q3 view by penny (9:35 AM ET) Powerwave Technologies
PWAV
is down 9 cents, or 2.4 percent, to $3.61, in early action. After Thursday's closing bell, the Santa Ana, Calif., maker of RF power amplifiers reported third-quarter earnings of $1 million, or 2 cents a share, a penny ahead of the average estimate of analysts polled by Thomson First Call. Sales jumped to $91.3 million in the latest three months from $64.7 million in the same period a year earlier.

Monsanto lowers earnings outlook for 2002 (9:14 AM ET) Monsanto
MON, -0.10%
says it expects earnings of $1.15 to $1.23 per share for full-year 2002, below its previous projection for a profit of $1.50 per share in the period. The company attributed the shortfall to a continued decline in sales of Roundup herbicide in the U.S. and lower-than-expected sales in Argentina. Monsanto said the outlook reflects reserves for potentially uncollectible receivables in Argentina. The company still expects to meet its projection for free cash flow of $400 million to $460 million in 2002.

MIM Corp. warns for Q3, FY; names Lusk CFO (9:09 AM ET) MIM Corp.
MIMS
is forecasting earnings of 74 and 79 cents per share for 2002, below its previously disclosed projection for a profit of 90 cents per share, and under the average estimate of analysts polled by Thomson First Call for earnings of 89 cents per share. For the third quarter, the Elmsford, N.Y., provider of pharmaceutical healthcare services sees earnings of 19 cents per share, short Wall Street's current consensus estimate for a profit of 23 cents a share. MIM attributed the weakness to slower than anticipated specialty referrals, and higher sales, general and administrative expenses related to its sales force additions. The company also named James Lusk chief financial officer, effective Oct. 15. Lusk most recently served as president, business services at Lucent
LU
The stock closed Thursday at $7.10, up 1.9 percent.

Nortel confirms Q3 revs of $2.36B (8:56 AM ET) Nortel Networks
NT
is confirming that it will report revenue of $2.36 billion in the third quarter, in line with its previously disclosed projections. The Toronto-based telecommunications equipment giant added that its cash performance continues to "be strong" and that it's "in the process of positioning itself around its four key businesses" to set its break-even point at quarterly revenue of below $2.4 billion. Nortel expects this break-even model to be in place by the second quarter of 2003. The stock closed Thursday at 44 cents, down 6.4 percent.

Longs Drug Stores lowers earnings views for Q3, Q4 (8:49 AM ET) Longs Drug Stores
LDG, -22.86%
is saying same-store sales rose 3.2 percent in September. Total sales for the five weeks ended Oct. 3 gained 5 percent to $409.2 million from $389.8 million in the same period a year earlier. The Walnut Creek, Calif., drug store retailer is also lowering its earnings outlook to 7 to 11 cents per share in the third quarter from a previous projection for a profit of of 11 to 16 cents per share. For the fourth quarter, Longs Drug sees earnings of 51 cents per share, down from its prior estimate for a profit of 56 to 61 cents per share. The stock closed Thursday at $22.39, up 7.2 percent.

Atmel sees Q3 revs of $300M (8:42 AM ET) Atmel
ATML
is saying that it expects revenue of roughly $300 million in the third quarter, in line with its previously disclosed projections. The San Jose, Calif., chip maker said that its cash and cash equivalents improved to $500 million as of Sept. 30 from $440 million as of June 30. Atmel added that it expects to be EBITDA (earnings before interest, taxes, depreciation, and amortization) positive going forward. Analysts polled by Thomson First Call are looking for Atmel to report a loss of 7 cents a share on revenue of $300.6 million in the third quarter. The stock closed Thursday at 70 cents, down 2.8 percent.

Black Rock meets Q3 target (8:39 AM ET) New York-based investment management firm BlackRock
BLK, +0.18%
posted third-quarter net income of $33.2 million, or 51 cents per share, up from $27.4 million, or 42 cents per share in the year-ago period. The latest number matched the forecast for earnings of 51 cents per share in a survey by Thomson First Call. Fourth quarter diluted earnings per share will be in the range of 50- to 52 cent per share vs. a Wall Street forecast of 52 cents per share. It sees 2002 results of $2.02 to $2.04 per share, vs. the $2.04 target. If "recent economic weakness and equity market deterioration" persists, Black Rock said it'll notch 2003 diluted earnings per share of $2.28 to $2.38, compared to a current target of $2.34. BlackRock is majority-owned by The PNC Financial Services Group
PNC, +1.35%
and by BlackRock employees. Shares of Black Rock rose $1.16 to $37.36 on Thursday. PNC added $1.93 to $38.28.

Royal Caribbean raises Q3 profit outlook (8:36 AM ET) Royal Caribbean
RCL, -0.77%
is saying that it expects third-quarter earnings of 98 to 99 cents a share. Analysts polled by Thomson First Call are looking for a profit of 86 cents a share, on average. The revised outlook includes a charge of $20 million, or 10 cents a share, related to a previously disclosed potential litigation settlement. The company cited continued strength in bookings, and a drop in costs for the higher projection. The company also said that the pattern of customers booking their cruises late has continued and that this makes it difficult to forecast future results. It sees full-year earnings in a range of $1.55 to $1.60 per share, including the charge. Wall Street's current consensus estimate for the period is for a profit of $1.45 per share. The stock closed Thursday at $16.84, up 4.7 percent.

Fastenal's third-quarter results are in line (7:57 AM ET) Fastenal
FAST, +0.26%
said third-quarter net income was $19.1 million, or 25 cents per share, up from $17 million, or 22 cents per share. The latest number matched the forecast in a survey of analysts by Thomson First Call. Net sales totaled $238 million, up 13.7 percent. Shares of the Winona, Minn.-based online seller of industrial supplies rose $1.16 to $28.79 on Thursday.

Imation says to top targets on data storage demand (7:57 AM ET) Imation Corp
IMN
is expecting to top its revenue and earnings target for the third quarter as it "continues to experience stronger than expected demand for data storage removable media products across all customer sectors and geographies." IMN said it now sees third quarter data storage revenues near to $250 million, up 20 percent from last year.

BB&T Corp. matches Wall Street view (7:48 AM ET) BB&T Corp.
BBT, +0.90%
reported third quarter net income of $336 million, or 70 cents per share, excluding merger-related charges, up from $283.5 million, or 62 cents in the year-ago period. The latest number matched the forecast of 70 cents in a survey of analysts by Thomson First Call. Including merger-related charges, net income was $328.2 million, or 68 cents per share, up from $222 million, or 48 cents per share. BB&T Corp. shares rose $1.52 to $33.04 on Thursday.

Barnes Group hits third-quarter target (7:38 AM ET) Barnes Group
B, +3.21%
said third-quarter net income was $6.9 million, or 36 cents per share, compared with $5.7 million, or 30 cents per share. The number matched the forecast in a survey by Thomson First Call. Net sales were $196.8 million, up six percent. The Bristol, Conn.-based maker of metal parts and industrial supplies saw its shares rise 25 cents to $17.75 on Thursday.

Lucent to cut 10,000 more jobs, $4 bln in charges seen (7:26 AM ET) Lucent Technologies
LU
is planning to cut 10,000 more jobs as it increases a restructuring program in the face of declines in its markets. It also told investors it's expecting a larger than expected loss in the fourth quarter as a result. The telecoms equipment maker expects to take a restructuring charge of about $1 billion. More, it also sees a charge to equity of about $3 billion "due to a decline in pension assets in its management pension plan, primarily as a result of declines in the equity markets." As a result of the step up in cost-cutting, Lucent said it has lowered its break-even revenue point to $2.5 billion a quarter. "Despite the market challenges, we intend to return to profitability in fiscal 2003 and we are taking more aggressive restructuring actions to bring our breakeven down even further," said CEO Patricia Russo in a pre-open statement. Lucent affirmed a it still expects a 20-25 percent sequential decline from third fiscal quarter revenues of $2.95 billion. Lucent expects its employee headcount to reach 35,000 by the end of fiscal 2003. With the cost-cuts plan and a lower breakeven level, the company expects to have more than $2 billion in cash at the end of fiscal 2003 without utilizing any new credit facility.

GE shares rise in pre-open as profit outlook maintained (6:13 AM ET) Shares of General Electric
GE, -1.70%
rose 40 cents in initial trading on Instinet to $23 a share right after the bellwether industrial-financial services company met its target for third quarter earnings and affirmed its full-year earnings target of $1.65 a share for 2002. There had been some expectation in the market that GE would have to acknowledge the impact of the slowing global economy on its 2002 profits. Third-quarter revenue rose 11 percent to $32.585 billion.

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